Hong Leong Investment Bank Bhd (HLIB) has maintained its BUY call on ITMAX System Bhd with an unchanged target price of RM6.00, saying analysts remain upbeat on the group’s earnings outlook as digital twins emerge as a new scalable growth lever alongside CCTV and smart parking, with consensus analysts broadly constructive on the stock.
HLIB analysts said ITMAX is expected to deliver stronger earnings ahead, supported by full billing of the DBKL 5,000 CCTV rollout and improving traction in its Johor smart parking segment, following a softer first quarter in FY26 that was affected by festive season disruptions and weaker one-off supply jobs.
The research house noted that the group’s recent results briefing pointed to a clearer monetisation pathway for digital twins, which are expected to sit on top of existing CCTV and traffic infrastructure to provide an integrated city-wide operational view. ITMAX currently charges about RM2 million to RM3 million per annum for its initial 2 square kilometre deployment under the MBJB contract.
HLIB said this remains early stage but highlighted the scalability of the model, given MBJB’s broader land area of around 300 square kilometres and the wider Johor-Singapore Special Economic Zone estimated at 3,588 square kilometres. It added that ITMAX is also in discussions with Kuala Lumpur City Hall for a similar rollout, with an initial scope expected at 3 square kilometres out of a total 243 square kilometres.
The analysts said digital twins could become a meaningful earnings driver over time, especially with potential upselling of additional features such as Samurai AI, although current contributions remain modest relative to the group’s core businesses.
HLIB kept its earnings forecasts unchanged and reiterated its Buy rating, adding that ITMAX’s long-term growth is underpinned by Malaysia’s urban digitalisation agenda and expanding smart city infrastructure deployment.
ITMAX’s stock price slips 0.82% to RM4.83 as of 11.07 am.
